Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2022 Earnings Presentation
47 slides from Akva Group Asa's earnings presentation, Feb 10, 2023
Slide 1: Q4 2022 Presentation
Q4 2022 Presentation Oslo, 10 February 2023 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Pioneering a better future
Pioneering a better future AKVAcrour
Slide 3: Agenda | Q4 2022
Agenda|Q4 2022 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights | Q4 2022
Highlights|Q4 2022 Operation Innovation ▪ Record high Sea Based order intake of MNOK 823 ▪ Solid progression in further development of our three innovation agendas ▪ Award of new RAS contract (February 2023) with NOAP for next 4,000 tonnes (phase 2). Estimated contract value of MEUR 40 ▪ High focus
Slide 5: Key figures | Q4 2022
Key figures|Q4 2022 Revenue EBITDA EBIT 779 MNOK 27 MNOK -14 MNOK 61 57 833 52 22 19 757 779 726 9 655 27 -14 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 -40 -106 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Pioneering a better future
Slide 6: Key figures | Full year 2022
Key figures|Full year 2022 Revenue EBITDA EBIT 3 376 MNOK 158 MNOK -56 MNOK 337 3 376 302 147 3 177 3 122 130 3 077 272 120 2 579 238 62 158 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 -56 2018 2019 2020 2021 2022 *Notes: - EBITDA / EBIT in 2021 are adjusted for costs of 49,7 MNOK related to c
Slide 7: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 048 1 849 35 1 769 1 650 85 1 688 889 87 1 579 827 72 103 254 33 95 742 28 34 96 829 21 27 650 726 779 683 32 812 167 759 823 695 704 Digital 935 902 902 Digital 450 852 Land Based 672 Land Based Sea Based Sea Base
Slide 8: Announced cost saving program being executed
Announced cost saving program being executed Cost saving target Headcount reduction Cost provisions (EBIT effect) 100 MNOK 130* FTE’s 98 MNOK 62 100 86 130 87 98 5 33 42 2 11 0 Total Total Digital Digital Digital Sea Based Land Based Sea Based Land Based Sea Based Land Based Total * Note: 70 in Norw
Slide 9: Restructuring of Land Based business according to plan
Restructuring of Land Based business according to plan ▪ The financial performance in Land Based is below expectations and not acceptable ▪ New blueprint organization established at headquarter Klepp and recruitment campaigns have been initiated ▪ Better access to talents in general, engineering res
Slide 10: AKVA implications of new resource tax
AKVA implications of new resource tax Activity level ▪ AKVA’s current products and services within Sea Based and Digital in Norway are supporting core activity and minor implications are expected on activity level ▪ AKVA does not expected new investment decisions within post smolt segment in Norway
Slide 11: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 12: Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030
Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030 Extrapolation of underlying demand growth for salmon 2012-2030 Consumption of Atlantic salmon WFE in mill. tons Main supply and demand drivers Growth in demand driven by emerging salmon 5.0 High demand growth (~4.5%)1 2022-
Slide 13: Innovation agenda for Land Based Salmon Farming
Innovation agenda for Land Based Salmon Farming Delivering complete scope of fish Market leading RAS technology farming technology (e.g. feeding, fish 1 enabling sustainable and cost-effective 2 tanks, fish handling, camera, lights, production sensors, control system) Data driven insight and intelli
Slide 14: Post-smolt RAS concept is validated
Post-smolt RAS concept is validated Pioneering a better future
Slide 15: Precision Farming Sea Based Solutions
Precision Farming Sea Based Solutions Marine Precision Feeding Digital Deep farming Infrastructure for optimizing feed to support precision to minimize number for secure containment conversion and growth farming with leading, of lice treatments and efficient operations open and modular ▪ Barges digi
Slide 16: Deep sea farming concepts
Deep sea farming concepts NAUTILUS™ TUBENET™ ATLANTIS Pioneering a better future
Slide 17: Current digital solutions
Current digital solutions 54 sites worldwide on recurring 167 sites worldwide on recurring Global market share of 60% revenue model (25 new sites in 2022) revenue model (125 new sites in 2022) Pioneering a better future
Slide 18: Medium term targets
Medium term targets Long term organic Operational Deliver min. 8% EBIT Innovation spending 3 Digital platforms: topline growth of excellence and in 2024 to support new AKVA Connect, min. 10% Y-o-Y cost saving Product development AKVA Observe and programs Step by step improve and Organic growth AKVA
Slide 19: Agenda | Q4 2022
Agenda|Q4 2022 Introduction and Financial Q&A Highlights Performance Session Pioneering a better future
Slide 20: Q4 2022 – Income statement
Q4 2022 – Income statement NOK million 2022 2021 2022 2021 Q4 Q4 YTD YTD ▪ Revenues decreased by MNOK 53 compared Revenue 779 833 3 376 3 122 to Q4 21 Cost of materials Payroll expenses 474 224 539 182 2 107 881 1 873 797 Other operating expenses 54 51 230 200 EBITDA 27 61 158 252 ▪ EBIT decreased b
Slide 21: Revenue development
Revenue development ▪ Last twelve months order intake and revenue was MNOK Revenue (MNOK) 3,414 and MNOK 3,376, respectively 833 779 757 ▪ Revenue decreased by 6% compared to Q4 21 726 655 ▪ Strong order intake in Sea Based in Q4 22 indicates increased activity level start of 2023 Q4 18 Q4 19 Q4 20
Slide 22: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 907 907 849 26 840 833 849 53 840 21 21 25 833 145 779 61 64 52 779 151 134 24 116 161 102 70 135 163 151 100 198 123 156 193 193 736 650 676 681 592 584 541 AustralAsia 465 460 394 Europe & Middle East Digital America
Slide 23: EBITDA and EBIT development
EBITDA and EBIT development ▪ Profitability in Q4 22 impacted by high cost EBITDA EBIT base and challenging profit margins in 120,0 13,0 Land Based 120,0 7,0 110,0 12,1% 12,0 6,9% 6,0 100,0 100,0 11,0 5,0 ▪ Acceptable profitability in Sea Based and 90,0 10,0 80,0 2,3% 4,0 3,0 9,0 Digital 80,0 60,0 2
Slide 24: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 793 13,6% 4,45 800 600 14 1 800 4,55 735 12,6% 13 4,20 700 11,6% 1 600 637 500 12 3,85 603 454 11 1 400 3,33 600 561 3,50 409 10 400 1 200 3,09 3,02 3,15 500 361 9 1 093 2,71 988 2,80 8 1 000 934 971 894 2,45 400
Slide 25: Development net interest-bearing debt
30.09.2022 894 EBITDA 27 Net interest 17 5 Corporate taxes Pioneering a better future 3 Change WC CAPEX 44 NIBD Q4 2022 MNOK New IFRS 16 liability 34 Other 18 31.12.2022 988 31.12.2021 934 EBITDA 158 Net interest 51 Corporate taxes 11 Change WC 158 CAPEX 168 Dividend 37 Development Net interest-bear
Slide 26: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 44 in Q4 22 and MNOK 168 for the full year 2022 ▪ MNOK 26 of growth CAPEX in Q4 22 relates to investments in our three innovation agendas 53 46 14 44 12 11 25 7 39 34 33 18 Q1 22 Q2 22 Q3 22 Q4 22 Growth Maintenance Pioneering a better future
Slide 27: Development return on capital employed
Development return on capital employed ROACE* (%) ▪ ROACE decreased from 6,7% in Q4 21 to -3,1% in Q4 22 and negatively impacted by restructuring and high inflation costs in 2022 ▪ Target of minimum 15% in 2024 15,0% 7,8% 6,7% 3,7% -1,3% -3,1% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 2024 target ▪ ROACE is cal
Slide 28: Dividend
Dividend Cash dividend (NOK per share) ▪ A dividend of NOK 1 per share was paid in Q1 2022 ▪ Due to the slow financial performance in 2022 the company has decided not to pay any dividend in the first half of 2023 1,75 1,50 1,00 1,00 1,00 2018 2019 2020 2021 2022 Pioneering a better future
Slide 29: Business segments
Business segments Pioneering a better future
Slide 30: Sea Based Technology
Sea Based Technology • Total revenue decreased by 9% Revenue (MNOK) and EBITDA-margin (%) • Strong increase in order intake from MNOK 695 in Q4 21 to MNOK 823 in Q4 22 1 000 8,4% 8,5 8,0 • EBITDA margin increased compared to Q4 21 but negative 900 7,6% 7,5 impacted by the lower activity level 7,0 80
Slide 31: Sea Based order intake and backlog development
Sea Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 900 2 800 2 700 902 935 852 902 2 600 672 2 500 759 823 2 400 695 704 450 2 300 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 12M Revenue 12M Order Intake Order Backlo
Slide 32: Development OPEX based revenue
Development OPEX based revenue ▪ Recurring revenue was MNOK 28 higher in Q4 22 Revenue (MNOK) compared to Q4 21 39,2% 350 40 ▪ Activity level at Egersund service stations increased by 300 31,3% 33,1% 35 10% in Q4 22 compared to Q4 21 30,0% 30 250 27,5% 25 200 20 150 15 221 226 232 100 204 186 10 50
Slide 33: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) ▪ Order intake of MNOK 34 in the quarter compared to MNOK 21 in Q4 21 161,0 163,0 2,1 0,0 1,8 0,0 150 ▪ Revenue increased by 1% in Q4 22 compared to Q4 21 ▪ Poor financial performance impacted by high cost base and 100 challenging project ma
Slide 34: Land Based order intake and backlog development
Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 700 600 500 829 400 812 779 300 726 683 200 254 167 96 100 21 34 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 12M Revenue 12M Order Intake Order Backlog Order Intake P
Slide 35: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ Revenue increased by 14% in Q4 22 compared to Q4 21 50 19,7% 20 ▪ Improved profitability is all related to increase in activity level and 45 15 more robust recurring revenue base 40 13,1% 35 10 30 5 25 24 21 1 1 0 20 5 9 15 EBITDA % 10 15 Europe&Middle
Slide 36: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 130 120 110 100 90 103 85 95 80 87 72 70 60 50 27 35 28 32 33 40 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 12M Revenue 12M Order Intake Order Backlog Order Intake Pion
Slide 37: Outlook
Outlook Pioneering a better future
Slide 38: Outlook
Outlook ▪ Order backlog is sound and forms a good foundation to execute our organic growth strategy ▪ Salmon prices expected to remain strong driven by reduced supply. ▪ The implications from the introduction of new resource tax are uncertain. Most likely this will continue to have a negative impact
Slide 39: Disclaimer
Disclaimer ▪ All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this n
Slide 40: Appendix
Appendix Pioneering a better future
Slide 41: Overview slide
Overview slide Leading Listed on Deliveries in Companies in technology Oslo stock 65 countries 11 countries. and service exchange over 40 years 1 469 partner since 2006 employees Pioneering a better future
Slide 42: Our presence
Our presence AKVA group Pioneering a better future
Slide 43: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) 2022 31.12. 2021 31.12. Intangible fixed assets 989 063 934 157 Deferred tax assets 21 831 11 229 Tangible fixed assets 635 245 642 568 Long-term financial assets 314 337 342 196 FIXED ASSETS 1 960 476 1 930 149 Stock 6
Slide 44: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2022 2021 2022 2021 (NOK 1 000) Q4 Q4 YTD YTD Cash flow from operating activities Profit before taxes -36 654 -28 -151 865 2 549 Taxes paid -5 185 -8 747 -11 422 -34 683 Share of profit(-)/loss(+) from associates -1 102 -2 339 -7 087
Slide 45: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 51,0 % EGERSUND GROUP AS NOR 6 600 192 18,0 % Israel Corporation Ltd ISR 1 578 731 4,3 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 084 222 3,0 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR
Slide 46: Pioneering a better future
CUSTOMER FOCUS AQUACULTURE 3 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 47: Pioneering a better future
Pioneering a better future AKVAcrRour